Shipping
industry sees much promise in second half
SHIPPING industry stakeholders are
certain that prospects for the second half of the
year will be better than the first half.
In the PortCalls online poll (www.portcalls.com)
as of June 4, 64 out of 71 respondents said the shipping
industry will grow this year. This represents 90.14%
of the total survey respondents. Only seven respondents
or 9.86% held gloomy thoughts.
In addition, ship agents interviewed
by PortCalls expressed optimism that business in general
will improve in the coming semester. Uni-ship, Inc.
executive vice president Romy C. Ordas forecasts imports
and exports - based on their performance for the first
six months - growing between 10% and 15%.
He said during the first half, many
clients held on to their goods due to the elections.
"This year is notably exceptional compared with the
previous years.
Businesses slowed down a bit because
of the elections. Still industry performed fairly
well," he noted.
For the second half, he said manufacturers
are finalizing transactions stalled by the elections.
Virgilio F. Angeles, general manager of COSCO Philippines
Shipping, Inc. said indications point to the country
trading an adequate volume of cargoes with the US
and Europe this year.
Inbound and outbound traffic, he noted,
could jump 10-15% in the second half although he still
does not discount the possibility of too much politics
getting in the way of business. Wilfredo Monillas,
general manager of China Shipping Manila Agency, Inc.
projects a 3-5% growth in cargo volume.
"China is a growing market and even
if we cannot be at par with China, we will remain
as one of its top trading partners. That
alone, promises us increased trade traffic," he commented.
The freight forwarding sector, meanwhile, sees the
second semester as always better than the first.
Philippine International Seafreight
Forwarders Association Inc. president Erich Lingad
said this trend is brought about by the traditional
peak season.
"Industry-wide, for the full year,
we may assume that 40% of the total trade traffic
is being delivered during the first half and the remaining
60% during the last half," he said.
THE implementing rules
for the adoption of the International Ship and Port
Facility Security (ISPS) Code in the Philippines is
in place.
Last week, the Office of Transport
Security (OTS) under the Department of Transportation
and Communications (DOTC) has started disseminating
the National Maritime Transport Security Program to
transport industry stakeholders. The 72-page document
approved by Transport Secretary Leandro R. Mendoza
last May 31, 2004, is being circulated via electronic
mail and through distribution of compact disks.
The program contains guidelines to
ensure compliance of Philippine-registered ships,
port and/or port facilities to the ISPS Code, which
will enter into force by July 1. In a telephone interview
with PortCalls, OTS undersecretary Cecilio Penilla
said the copies are currently "spreading like wildfire"
given that the anti-terror law is set to be imposed
in barely a month's time.
The program stressed all Philippine-regulated
ships, ports, port facilities and port service providers
covered by the ISPS Code must have approved security
assessments and plans by June 30, 2004. "The ISPS
Code requires security assessments to establish threats,
determine vulnerabilities and treat risks to assets,
infrastructure and operations.
This approach recognizes that owners
and operators are best placed to determine the vulnerabilities
of their own assets, infrastructure and operations
as well as identify appropriate preventive security
measures and procedures and develop appropriate security
plans," the program said.
Among its objectives are: to establish
the international framework of cooperation between
involved parties; establish the roles and responsibilities
of government agencies; ensure early and efficient
collection of information; provide a methodology for
security assessments; and ensure confidence that adequate
maritime security measures are in place.
The security program specifically
identified that the ISPS Code will cover all Philippine-registered
ships engaged in international voyages. These involve
passenger ships including high-speed passenger craft
regardless of size; cargo ships of 500 gross tonnage
and above; and mobile offshore drilling units.
It will also affect government and
private ports serving international vessels and all
Philippine shipyards accepting ships engaged in international
voyages. The security program reiterated OTS' function
as the sole authority related to ensuring safety in
transportation.
As such, the OTS will be responsible
for institutionalizing appropriate mechanisms to set
the security level at which affected stakeholders
must operate.
Security levels are categorized into
three: Security level 1 or "normal" maintains minimum
appropriate protective measures; security level 2
or "heightened" requires additional protective measures
for a period of time; and security level 3 or "exceptional"
is applied when there is a probable risk of incident
and requires further specific protective measures.
The program tackles specific provisions
on the preparation of the ship security assessment,
ship security plan, verification and certification
of ships, port facility security assessment, port
facility security plan, declaration of port security
and statement of compliance of a port facility.
FOLLOWING its recent disclosure to
retain its Subic hub, Federal Express Corp. (FedEx)
has also decided to reserve about 50 hectares in Clark
for future expansion.
Clark International Airport Corp.
president Adelberto F. Yap told PortCalls that the
50-hectare area can accommodate up to 30 MD-11 cargo
planes. "We have finalized the contract last week
with two representatives from FedEx - Asia Pacific
vice president for Planning and Engineering Dennice
A. Wilson and FedEx president for Asia Pacific Region
David Cunningham," Yap said.
Commenting on FedEx's recent decision
to retain its Subic hub, Yap said the setup is "most
appropriate" considering the time needed to prepare
Clark to accommodate FedEx's additional fleet. "That
is okay.
We have no problem with that. We are
happy that FedEx is still considering to operate in
Clark in the near future," Yap said, adding that two
years before the courier's contract in Subic expires
in 2010, Clark will already start setting up its facilities
in the pre-arranged area.
He noted Clark already has two runways,
an extra factor in the expansion plan of FedEx.
Earlier, SBMA chaiman Felicito Payumo
announced FedEx has decided to stay at the Subic Freeport
until August 2010 "with an option to renew each year
for three years until 2013." Subic became FedEx's
Asia Pacific hub in September 1995, connecting 19
key cities in Asia.
The hub services US WestCoast from
Penang, Singapore, Kuala Lumpur, Manila and East Timor.
Its current five-year lease contract expires on August
31, 2007.
The extended contract will take effect
September 1, 2007. Payumo said Clark is an alternative
for FedEx, especially with its pending plan to operate
the bigger A-380 aircraft which would require a longer
runway.
Meanwhile, FedEx's Cunningham in a
statement said FedEx's outstanding performance across
the region and exceptional results in China indicate
that current operations at Subic Bay may not be able
to support projected growth."
ATI
increases productivity in handling steel cargoes
ASIAN TERMINALS INC. (ATI) recently
achieved a new productivity record for handling steel
cargoes, resulting in faster vessel turnaround at
the South Harbor General Stevedoring Terminal.
Sea Pine Shipping Corp. commended
the company after the shipment of about 45,256 metric
tons (MT) steel billets for Steel Asia Manufacturing
Corp., the country's largest manufacturer and supplier
of steel bars. M/V Sanko Supreme, a 50,655-MT eight-hatch
self-sustaining vessel of Sanko Steamship Company,
last week docked at the South Harbor.
The unloading of steel cargoes from
the vessel took about four and a half days. James
N. Hernandez, Sea Pine Operations officer, said efficient
port services translate to faster turnaround, which
in turn, means savings on vessel charter costs.
Charter cost is the expense incurred
by shippers for the rental of a vessel to transport
cargo to a stated port for a specified time. "Aside
from better cost efficiencies, ATI continues to deliver
value for us with its superior quality of service
that is unmatched in the cargo handling industry,"
Hernandez said.
From a minimum productivity rate
of unloading steel cargo per gang per shift of 800
to 1,000 metric tons (MT), ATI stevedores who worked
on unloading steel billets from M/V Sanko Supreme
had achieved a record 1,712 metric tons, the highest
volume discharged by one gang in one shift on record.
ATI noted the record was achieved without compromising
the safety of stevedores discharging the cargoes.
"Thorough vessel inspection procedure
and toolbox meetings are undertaken before unloading
operations commence," the company said. ATI handles
a substantial volume of non-containerized imports
through the Port of Manila.
In 2003, the company saw total throughput
of 3.44 million metric tons at the South Harbor General
Stevedoring Terminal.
The Terminal handles timber, steel,
motor vehicles, livestock, heavy lifts, specialized
project cargoes, bagged cargoes, grains and other
dry bulk cargoes, either discharged at pierside or
any of the 18 anchorage points inside the Manila Bay
breakwater.
CARGO and courier service provider
Aboitiz One Inc. said it is targeting a net income
of P180-P200 million for 2004 from the P120 million
it earned last year.
In a press briefing last week, Aboitiz
One chief operating officer Efren Uy said the projection
follows positive performance of the company's various
business units such as Deliver & Service (D&S), direct
mail and Aboitiz Express. "Hopefully we would be able
to double our 2003 figures by the end of this year,"
he said.
For the first quarter, the company
doubled its income to P40 million from P20 million
during the same period last year. Capital expenditure
for 2004 is estimated at 20% higher than last year's
P50 million.
Uy said a considerable part of the
capex, which will be generated internally, will be
directed toward the acquisition of additional freighters
before the end of the year. "We are just waiting for
the right aircraft, the right size, which will be
able to accommodate our growing volumes," he noted.
The company presently charters aircraft
from Asian Spirit and the Bangko Sentral ng Pilipinas.
It also has seven YS-11s, each with a capacity of
six tons; 20 sea vessels; 70 plus delivery vans and
multi-cabs; and over 270 motorbikes and trikes.
Meanwhile, Aboitiz One also received
the ISO 9001:2000 certification for having fully complied
with international standards for parcel and cargo
handling delivery services. To further improve its
systems, the company relies heavily on IT innovation.
It is the first parcel delivery service that utilized
the short messaging system and the internet to allow
its customers to keep track of their packages and
cargoes.
Aboitiz One also uses the Global Positioning
System, which allows it to track its delivery trucks,
for added security.
FOR the fifth month in a row, the
Bureau of Customs (BOC) has exceeded its collection
targets.
Revenue collections for the period
reached P50.476 billion or 16.1% more than the P43.471
billion projections for the January to May period.
Customs Commissioner Antonio M. Bernardo said collections
in April were 10.8% higher at P10.705 billion than
the targeted P9.661 billion.
He noted collections since the start
of the year have already exceeded 2003's performance
by 15.4%. The BoC was tasked to collect P112 billion
to help keep the budget deficit to P197.8 billion
by the end of the year.
Bernardo said institutional reforms,
most of which involve computerization, are responsible
for the bureau's outstanding collection performance.
At the start of the year, the government approved
the release of P500 million to finance its computerization
project.
In a survey conducted by the Department
of Trade and Industry, the BOC ranked first in electronic
and commerce readiness among government department
and agencies.
Results showed the bureau has a 98%
compliance in the area of application systems, electronic
lodgment of import declaration, project abstract secure
system, online release system, and IT infrastructure.
SOUTH Cotabato Integrated Port Services,
Inc. (SCIPSI) recently opened the Makar Wharf in Gen.
Santos City in southern Philippines to international
transshipment with the inaugural call of the Indonesian
vessel, MV Rimbah Tujuh, early this year.
SCIPSI, cargo-handling company at
the Makar Wharf and an affiliate of International
Container Terminal Services, Inc. (ICTSI), has prepared
port equipment and facilities, information technology,
and manpower for brisk terminal activities with the
opening of the Makar Wharf to increased international
trade.
The MV Rimba Tujuh, operated by Indonesian
shipping company, PT Humpus Intermoda Transportasi
Tbk, will act as a feeder vessel for main line operators
APL and P&O. Cargo is then loaded onto Goldlink vessels,
MV Marina and MV Confidence, destined for Taiwan or
the US West Coast.
The vessel has a carrying capacity
of 180 to 200 TEUs, and is capable of handling both
dry and refrigerated containers, as well as bulk cargo.
It will be plying the Bitung, Sulawesi-Gen. Santos,
Mindanao route every ten days, offering Mindanao producers
adequate opportunity to consolidate cargo to meet
world demand.
The new shipping route is an alternative
transshipment course for cargo in the BIMP-EAGA (Brunei,
Indonesia, Malaysia, and the Philippines-East Asia
Growth Area) bound for major international markets,
especially the US West Coast. Businessmen in the region
expect the new sea route to increase competitiveness,
strengthen trade and investment linkages, and encourage
existing transport links in BIMP-EAGA.
Filipino businessmen, on the other
hand, are studying the advantages of relocating their
distribution points to Mindanao given the potential
economic benefits offered by the new sea link, such
as reduced shipping time and freight rates.
FREIGHT carrier Lorenzo Shipping
Corp. (LSC) recently reported a whopping increase
of 1,128% in net income for the first three months
of the year to P16.854 million from P1.372 million
during the same period last year.
In a disclosure to the Philippine
Stock Exhange, the company said the ten-fold growth
is mainly due to the P25.9-million additional net
revenues.
Several factors contributed to this
10% increase over last year, it noted, including the
7% increase in twenty-foot equivalent unit (TEU) volume;
implementation of an automatic fuel rate adjustment
and a general rate increase for domestic cargoes in
April and October 2003, respectively; and improved
cargo mix.
The contribution of its top accounts
for both southbound and northbound as well as the
livestock volume boosted cargo traffic growth. "These
include manufacturing companies, cargo forwarders
and distributors," the company said. Ocean-going carriers'
volume was at par with last year's volume while northbound
livestock volume increased 15%.
More vessel trips were realized during
the period as only one vessel was on drydock compared
with three last year.
LSC said ship operating expenses
rose 8% or P18.39 million due to a P15 million or
26% increase in fuel and lubricants brought about
by the fuel price hike; P1.5 million or 3% increase
in amortization of drydocking costs; P0.8 million
or 18% increase in port charges due to improved vessel
trips; and P1.7 million or 54% increase in deck and
engine supplies.
Interest and finance charges fell
31% (P8.8 million) due to the reduction in loans.
Losses from foreign exchange grew P1.6 million due
to the peso devaluation.
CTSSI
cargo management software brightens up port technology
landscape
By LEO V. MORADA, Columnist
A NEW suite of integrated cargo management solutions
is now available from Container Terminals Systems
and Solutions, Inc. (CTSSI), a subsidiary of global
port operator International Container Terminal Services,
Incorporated ( ICTSI ).
CTSSI cargo management solutions consist of three
main software packages: GTS Container Terminal Software,
GCS General Cargo Software, and GTS Rail Software
Most industry practitioners and port experts assert
that tangible business value can be gained when a
port technology solution features a high level of
integration and flexibility.
In this regard, CTSSI cargo management solutions
are highly integrated and extremely flexible and support
all types of handling operations to suit specific
needs in terms of:
*Vessel - Lo Lo / Ro Ro / conventional operation
*Yard - any type of yard stack layout
*Handling Equipment - transtainer / straddle / top
lift handling
GTS Container Terminal GTS is an advanced, state-of-the-art
graphical tracking system developed for container
terminal operations and associated transport facilities.
Programs for vessel schedule, vessel planning, yard
planning and allocation, real-time equipment control
and gate operations are all characterized by graphical
displays and views.
Vessel profile and yard layout screens are viewed
in correct physical scale alignment. Container icons
are shown with varying colors that highlight groups
of container by location, by vessel/voyage, port of
discharge, service and others.
The yard allocation process or "allocator" is a separate
GTS module that is called to give a planned yard position
to a container. GTS also supports the use of radio
frequency mobile data terminals (RFMDT) for terminal
activities including vessel exchange, receival and
delivery, and in-yard shifting.
It likewise includes several modules for electronic
data interchange (EDI) interfaces based on UN/EDIFACT,
SMDG and industry specific messages such as stowage
plans and manifests. It is notable that GTS features
web-based programs that are optional modules to provide
information and service to port users through Internet
connection.
These are the Client Information System (CIS) for
electronic inquiry on container information and vessel
schedules, and Truck Reservation System (TRS) for
bookings by truck operators of container pick-up/delivery
in the terminal, GCS General Cargo GCS is specifically
designed to cater to handling of all general cargo
activities within a marine terminal stevedoring environment.
Where operators have a limited throughput of containers
accompanying the general cargo operation, programs
are also included to manage the container wharf side
and gate handling and CFS pack/unpack routines. The
operational programs handle shipment quantities, commodity
types, weights and volumes as identified by marks
and numbers and cargo description.
In many general cargo port environments, one of
the biggest challenges is how to track and monitor
general cargo movements. GCS General Cargo provides
a straightforward solution for this by being able
to track shipments on vessels, in containers and loose
in warehouses or open spaces at Bill of Lading and
Item level.
Since it uses the same database as GTS software,
GCS General Cargo can be efficiently utilized to manage
cargo movements taking place at multiple yards / multiple
berths in a particular port operation environment.
GTS Rail This package supports a rail container operation
that can be fully integrated with container terminal
system configuration or alternately can operate as
a "stand-alone" intermodal type rail facility.
The software uses several modules from the terminal
system to provide planning, allocation, gate operation
and operational monitoring. Additional planning tools
are provided for the loading and unloading of trains.
Databases are supported for railcars and road vehicles/transport
companies.
It likewise features a train scheduling facility
and is fully capable of supporting operations on multiple
tracks at any one time.
